Dubai is one of the easiest places in the world to start a company — but the choices you make at the outset shape your tax, liability and ability to grow for years. This guide covers the essentials. It is general information, not legal advice — for that, speak to our business lawyers in Dubai.
Mainland, free zone or offshore?
A mainland licence lets you trade directly across the UAE market. A free zone offers ownership, tax and setup advantages but with restrictions on trading onshore. Offshore companies are used mainly for holding and international business, not local trade. The right choice depends on your customers and activity.
Foreign ownership
Recent reforms allow full foreign ownership of a wide range of mainland companies, and free zones have long allowed it — so for many activities you no longer need a local partner. The exact position depends on your business activity.
Structure, licence and contracts
Setting up well means choosing the right legal form, drafting your memorandum and articles, and putting shareholder or partnership agreements in place before problems arise. Bilingual (English and Arabic) contracts reduce risk, because Arabic is the language of the UAE courts.
Common pitfalls
- Choosing a structure that limits your market or ownership without realising it.
- Relying on a template contract that is not enforceable in the UAE.
- Unclear shareholder arrangements that cause disputes later — see our civil and commercial litigation team.
How we help
We advise on structure, draft your incorporation and commercial documents, and act on disputes if they arise. Talk to our business lawyers in Dubai or call +971 54 388 0722.
Related reading: Civil Disputes & Litigation in the UAE.